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Health and Human Services Agency (HHSA) recommending the Board:
1) Make findings pursuant to Section 3.13.030 (B) of the El Dorado County Ordinance Chapter 3.13, Contracting Out, that the Social Rehabilitation Treatment Services services provided by Compassion Pathway Behavioral Health LLC doing business as Compassion Springs (Compassion) requires specialty skills and qualifications not expressly identified in County classifications are involved in the performance of the work;
2) Approve and authorize the Chair to sign Amendment III to Agreement for Services 8092 with Compassion, increasing the contract value by $1,500,000, for a revised amount not to exceed $7,500,000, with no change to the three-year term expiring June 30, 2027, and updating the reference of the Mental Health Services Act (2004) to the Behavioral Health Services Act (BHSA) (2024);
3) Authorize the Purchasing Agent to execute amendments relating to Agreement 8092, contingent upon approval by County Counsel and Risk Management, which do not increase the maximum dollar amount or term of the Agreement; and
4) Authorize the HHSA Director, or the Chief Assistant Director, to execute programmatic, administrative, and fiscal documents relating to Agreement 8092.
FUNDING: 36% Federal Medi-Cal, 54% Realignment, and 10% BHSA.
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DISCUSSION / BACKGROUND
On behalf of the County, HHSA’s Behavioral Health Division (BHD) contracts with the State as the Medi-Cal Mental Health Plan (MHP). As the MHP, pursuant to Welfare and Institutions Code (WIC) Section 14184.402, HHSA BHD is required to provide Specialty Mental Health Services (SMHS) to individuals, including residential SRTS for individuals who would be at risk of hospitalization were they not in a residential treatment program. To meet this requirement, the MHP contracts with providers of SRTS to ensure availability of services in accordance with Title 9 and Title 22 of the California Code of Regulations and California WIC Section 5600 et seq., 14000 et seq., and 17000 et seq.
Through Agreement 8092 approved by the Board on June 11, 2024, Compassion operates several residential treatment facilities licensed and certified by the State of California to provide SRTS (Legistar file 23-2148). SRTS provided by Compassion are designed to assist clients in the development of skills to become more self-sufficient and move towards increasing levels of independent functioning, with the ultimate goal of community reintegration. Amendment I to Agreement 8092 was executed by the Purchasing Agent on October 10, 2024, to update the Provider Rates included in the Agreement, with no change to the term or maximum obligation. In October 2025, HHSA was notified of Compassion's new Bayoak Social Rehabilitation Facility in Sacramento County, which BHD approved as a facility addition to the Agreement on November 21, 2025, via Notice to Parties. A conserved client was urgently placed at the new facility, requiring the provider rate to be added retroactively. The Board approved Amendment II to Agreement 8092 which formalized this addition (Legistar file 26-0450).
HHSA recommends that the Board approve Amendment III to Agreement 8092 to ensure access to SRTS on an as-needed basis. This amendment increases the total not to exceed (NTE) amount from $6,000,000 to $7,500,000 because the original term of the agreement was extended by one year via Notice to Parties, in accordance with the extension option included in the agreement. This adjustment in NTE is necessary to maintain uninterrupted access to SRTS, as this agreement provides the majority of SRTS within El Dorado County’s adult system of care. The increased funding will support HHSA in meeting its obligations as the MHP and ensure that SRTS remain available on an as-needed basis.
Pursuant to Board Procurement Policy C-17 (3.6) Finding of Facts, SMHS are exempt from competitive bidding because the MHP must contract with sufficient licensed residential and rehabilitation providers in good standing throughout California to meet network adequacy requirements for the mental health continuum of care.
ALTERNATIVES
Should the Board decline to approve these recommendations, HHSA would be unable to continue referring eligible clients to the several SRT service facilities included in this Agreement. This would severely limit access to these types of facilities, which is likely to result in the County being unable to meet its obligations as the MHP.
PRIOR BOARD ACTION
1) 01/09/2024 Legistar file 23-2148, HHSA Residential Treatment Contracts 8091, 8092, 8093
2) 05/19/2026 Legistar file 26-0450, HHSA Amendment II to Agreement for Services 8092
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel, Human Resources, and Risk Management. The Auditor-Controller was notified in accordance with Policy B-12.
CAO RECOMMENDATION
Approve as recommended.
FINANCIAL IMPACT
There is no Net County Cost associated with this agenda item. Sufficient appropriations were included in the Fiscal Year 2026-27 budget and will be included in future budgets for the term of the Agreement.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk of the Board to obtain signature of Chair on one original Amendment III to Agreement for Services 8092.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Olivia Byron-Cooper, MPH, Director, Health and Human Services Agency